Cathie Wood, head of Ark Investment Management and famous for her long-term investment strategies, recently purchased 14,686 shares of Alphabet, Google’s parent company, valued at $2.4 million. Known for buying during dips and selling on highs, Wood seized the opportunity as Alphabet’s stock fell 14% from its July 10 peak.
Despite her 2020 success, with Ark Innovation ETF (ARKK) delivering a 153% return, Wood’s recent performance has lagged. The ETF saw negative returns of 8% over the past year, far behind the S&P 500’s 21% gain. Critics argue Wood’s strategy, focusing on volatile high-tech stocks in areas like AI and blockchain, lacks the forecasting talent needed for success. However, she defends her approach, suggesting traditional investment styles are becoming outdated.
Ark Innovation ETF has seen a $2.3 billion net outflow in the past year, reflecting some investor dissatisfaction.